EU Imposes Tariffs on Moroccan Aluminum Wheels Amid Broader Trade Concerns

The European Commission has introduced countervailing duties on Moroccan aluminum wheel exports, citing subsidies that allegedly harm the European industry. Under Implementation Regulation No. 2025/500, issued on March 14, tariffs of 31.45% will apply to Dika Morocco Africa and 5.60% to Hands 8. This decision follows an investigation initiated in February 2024 after a complaint from the European Wheel Manufacturers Association (EUWA).

The Commission highlighted a significant increase in Moroccan aluminum wheel imports, which rose from a 2% market share in 2020 to 9% in 2023. With prices reportedly 16% lower than those of European producers, the EU argued that these imports, supported by subsidies, have distorted competition and caused economic harm to European manufacturers.

Morocco’s Ministry of Industry and Commerce criticized the decision, emphasizing that the partnership with the EU should not be subject to selective measures. The ministry also revealed that Dika Morocco Africa had canceled plans for a fourth factory in Kenitra due to the tariffs, opting instead to invest in Portugal.

Industry experts interpret the tariffs as part of a broader EU strategy to counter China’s growing influence in global trade. Chinese companies, including CITIC Dicastal, have been expanding their operations in Morocco’s automotive sector, raising concerns among European nations about potential market distortions. Analysts argue that the EU’s measures aim to curb China’s influence wherever it operates, particularly in sectors like automotive manufacturing.

The Moroccan government has vowed to defend its industries and investors, emphasizing its commitment to maintaining its position as an open and neutral industrial platform. However, this trade dispute underscores the intensifying competition between Europe, China, and other global players in key industries like automotive manufacturing.